Positive Aspects of the Economic Growth in Last 5 Years
In 2011, the economy of Australia was seen to experience a sharp run up of the prices which are seen to be related to the key esxport commodities for the country. This is seen to result in unprecedented boom in mining investment. Some of the main benefits have been seen to be associated to the industry matters which were beyond the growth seen in terms of just the mining industry and the string growth factors which seen to be associated with strong development in the employment growth and the wages in wide range of the industries across the nation. The main aspects of the economic growth has been further seen in terms of the different types of the considerations made from the consideration of the additional use of the physical capital and components which may embody new technologies. The growth in the economy has been seen with the implementing more human capital. Despite of a slow economy of Australia during the mid 2000s, the productive has been witnessed with a significant growth in the recent times. Some of the main form of the changes in the economy has been further seen to be associated to the increasing investments and growth in the mining sector. The essay is related to discuss on the growth factors of economy in Australia which was seen to take place in the last five years in terms of the GDP of the country. The economic growth component of has been further seen with the effect which it is seen to be having on the society. The report has been seen to discuss both the positive and the negative effects on the society (Salahuddin and Alam 2015a).
The various types of the market based economy have been seen to be based on both the positive and the negative growth in the nation.
The positive aspects of the economic growth of the country have been seen in terms of commodity exports. The main improvement in the economic situation of Australia has been further witnessed with a substantial growth in the mining industry. The main impact of this in the society has been seen in terms better job opportunities related to these sectors and the country as a whole. This has been seen to be further associated to the implementation of the new production techniques and the use of more efficient use of the productive resources. In other terms the expansion activities has been seen to provide a more productive frontier. It has been further seen that the additional physical, private and the public has been able to encompass new technologies (Horne 2013). Some of the main forms of the benefits have been further seen in terms of the additional physical capital, both private and public which works on the capitalization of the new technology. The form of the economic benefit has been further seen to be based on the adoption of the developments made in terms of employing more human capital via training and education (Thorpe and Leitão 2014).
Factors Contributing to Productivity Growth
The market based economy has been further seen to take in account the competitive and the flexible labour market products. These considerations have been further seen to be based on the price and the wage signals which are seen to encourage the capital and labour to move into more profitable and unprofitable zones. Australian economy has been identified to implement the main drivers which are seen to be related to the developing of new products and taking considerable advantages for the scientific progress in terms of the long-term growth (Salahuddin and Alam 2015). The various considerations have been further seen to aid the robust institutional framework, such as: the rule of law; effective regulation and oversight of parts of the economy. This has been further able to ensure, effective regulation and the considering the soundness of the financial system and the efficient provision of the infrastructure and the public services and the prudent management of the fiscal and the monetary affairs. The productivity growth of the country has been seen to be witnessed in form of the broad deregulation of the labour markets, financial products and the liberalization of the international trade. The program of the various types of the corporations and the privatisation of the public enterprises has been seen to be taking place in privatisation of public enterprises (Adams and Atsu 2014).
The productivity growth in Australia has been seen to be growing in the recent years. This has been able to reflect the production boom observed in terms of the mining boom, which has been seen with a strong rise in the output in combination with improvement in the employment opportunities (Hatfield-Dodds et al. 2015). The productivity growth has been seen in terms of investments which are seen to be made in terms of responding to the pressures in an effective manner. The common theme is seen to be based on focusing on low cost strategies and improving the productivity response for the subdued growth. The productivity growth has been further seen to be evident in various types of the other improvements seen in terms of focusing on strategies for the development based on the human capital, improving infrastructure and government services and transmission of academic knowledge by creating more academic institutions and linking the same with the business community (Taylor et al. 2014).
The various types of the constraints for the market based economy have been mainly seen with the assistance of the flexible product and the labour markets. These has been able to provide the necessary advantages related to a better price and wage signals which is seen to encourage both the labour and the capital markets to move into more profitable regions. The competitive markets are also seen to encourage the companies to seek for a better efficiency through gains and in terms of pursuing innovation(Tang and Tan 2015). Some of the other growth aspects of the economy have been further identified in terms of flexible labour and product markets. These developments have signalled to encourage labour and capital to move in a more profitable opportunity. The competitive markets have been seen to encourage the companies to seek profit in terms of the efficiency gains and also pursue higher degree of innovation. The markets have been seen to be further supported by a robust institutional framework. This has been seen to be associated to the effective implementation of the law and the regulation which are seen to ensure the soundness in the financial system. The various types of the growth in the productivity have been seen to be especially strong in Australia during 2013. An obvious growth has been with the technological progress (Shahiduzzaman and Alam 2014).
Constraints for Market-based Economy
The recent update in the mandates of the banks in Australia has been seen to support the GDP growth in the current sub trend pace. The various assumptions of the report have been further able to suggest an overall improvement in the rate of economic growth and decline in the unemployment. Looking back in the previous year it can be seen that dwelling investment has been seen with strong contribution across demand in all the states. The growth consumption of the demand has been seen to increase particularly in New South Wales, although the nation’s average has been seen to be below average as a whole. In 2014, the dwelling investment has been witnessed with a strong growth in terms of contribution made to demand in all the states. The growth in the consumptions has been further seen to be bit weak in Queensland and Western Australia (Leigh 2013).
A change in the wages has been seen to be contributing factor for a stronger economy. The growth rate in the wages has been seen with a substantial decline. The lower growth in the wages has been able to considerably depress the overall growth in the wages. It has been also seen that lower growth in terms of the wages is seen to depress the growth in the overall income and the increase in the employment rate. At the same time, the lower wages has allowed for more employment and this has been seen with an overall growth in the support with the total labour income. In similar terms the growth in the productivity has been seen to be witness a growth in the overall productivity growth in the recent years. The cost of obtaining the labour is seen to produce the adequate unit of labour and the output. The economy is seen to operate in terms of the productive capacity. The lower exchange rate has been further seen to provide the support for the demand in the Australian produced services and goods (McDonald 2015).
Based on the various types of the available information it has been seen that the business services has been seen to be increasing at a substantial rate, along with the share of output and the employment. Based on the positive aspects of the economy it has been observed that the resource production is likely to increase for the next few years. Another important contributing factor to the GDP has been seen in terms of the manufacturing output.
Negative Aspects of Economic Growth
Some of the main forms of the contributing factors in the household consumption have been seen with the household expenditure shares in food and accommodation, education, health care, communications, air travel, arts and recreation(George et al. 2015).
In the beginning of 2013, the GDP growth of Australia has been seen to be low and so was the rising trend in the unemployment rate. While there has been significant growth on national basis, the domestic demand in the Western Australia, has been seen to fall by 2.5%. The economy of Australia was further seen to shrink by 0.5% in September 2016. The annual rate of growth was anaemic with only 1.8 % in the same year. As per the statement given by Kevin Rudd, the contraction in the real GDP recorded in September is not just a reminder but also seen as a wakeup call for the economic growth. The demand to support the various types of the economic growth has been identified with the investment in the support for the job security. The economic growth has been further seen to be sluggish in 2015, due to negative growth in terms of retail spending (Iamsiraroj 2016).
From the data published in trading economic it has been further seen that the GDP growth rate in Australia declined from 0.9% in 2013 to 0.4 in 2014 and 0.2 in 2015.The worst GDP growth was seen to be experienced in July 2016 with -0.5%. The consumption growth in 2014 was further seen to be the weakest in Western Australia and Queensland. The negative effects of the economy has been seen to be directly affecting the employment rate and led to increased turnover. Several researches have been further able to suggest that the growth patterns are seen to be related to the social equity and explain the relationship which exists between the growth and inequality. The existing public policies are seen to inflict inequality in several ways. In the long-term, the public interest is seen to negatively affect the earning capability in the different segments of the population (Law and Singh 2014). The public goods such as infrastructure have been seen to be benefitting the population in several ways. In the short terms it has been further seen that the fiscal policy directly affects the households with the tax and the transfers. It has been further seen that the fiscal policy also has an important role in contributing to the inequality. The cross country comparisons show that the various types of the differences in the income equality is seen to be a result of the differences in the tax and transfers. It has been further observed that Australia has the highest pre-tax income equality among the OECD member countries (Baker, Merkert and Kamruzzaman 2015). The after tax income equality has been observed to be closer to the average due to the difference among the pre tax and post tax income equality. Hence it has been evident that the rising tax rates have been seen with a negative impact on the efficiency. The taxes are seen to directly affect the trade-off between efficiency and equality. The Australian dollar has been seen to depreciate by 20% in the mid 2013 and this caused some negative influence in the society. The most significant change in the economic growth has been seen to be witnessed in terms of the population growth distorting housing, labour markets. The most significant example has been seen in terms of the sharp increase in the Australia due to the increasing migrants. The unemployment rate at present has been seen to be 5.75% which seen to be higher by 0.15% than the previous quarter. In addition to this the Australian individuals feel that they haven’t been able to benefit from the long stretch of the economic expansion. The pay packets are not seen to be bigger for the essentials (Bennett et al. 2015).
Conclusion
Some of the other forms of the social issue have been seen to be discerned in form of the health, education, economic growth and economic stability. Several research has been able to discern that the most concerning factor for poor health has been seen to be evident in form of inequality, which has led to poor health. In Australia the diminishing marginal returns affects the individual’s expenditure related to the health, hence a transfer from treating the rich to the poor would reduce inequality and at the same time improve the total health of the population. Several economists have been further able to show that the inequality of the economy has often led the rich to consume a smaller proportion of the income in compared to the poor. Furthermore, their savings is seen to be higher in terms of the people who are more likely to spend. But as the inequality grows, the individuals with low relative incomes are seen to maintain consumption through borrowing. It has been seen that a small rise in terms of the unemployment can often lead to a high amount of the unemployment or the interest rates and this can further lead to increased amount of defaulters on the mortgages and the consumer loans (Salahuddin and Alam 2015). The overall impact of this is seen to be catastrophic in nature. Some of the other forms of the negative growth in the economy has been further witnessed in terms of the relative increments in the scarcity of the resources and the several types of the natural assets like arable lands, water, forests, mineral deposits and fish stocks. The infrastructural roads for schools, hospital and the telecommunication is also seen to be affected largely by the various types of the influence which are seen to be related to the increasing expenditure which is to be spent on the new resources (Putterman 2013).
The scarcity in the allocation of the resources has been seen to be the main cause due to the increasing population. Another important factor has been seen in terms of increasing amount of per unit cost for the natural resources. Overburdened infrastructure has been seen to ignore the costs considerations for the growth in the population. It has been further seen that in several instances the economy of Australia has been not able to cope with the various types of the changes which are seen to be related to the wage decline. An increasing amount of the labour supply has been seen to witness the several types of the growth which are seen to be related to the new regulation and the laws governing the economic decisions. The main problems have been further seen in terms of the technological progress (Bejder et al. 2016).
Some of the main forms of the recommendations have been seen in terms of the increasing progress in the tax system. The main recommendation for reducing the negative impacts in the society due to the economic changes has been mainly seen identified in terms of a more even distribution of wage. The International Monetary Fund has shown that the longer growth in the economy is directly responsible for bringing in more equality in the nation. Another improving measure can be taken by making the public expenditure more progressive in nature (Salahuddin and Alam 2015).
Conclusion
The study has been able to consider the impact of the economic growth starting from 2013 to 2016. Some of the important assumptions of the positive economic impact have been seen in terms of commodity exports. The main improvement in the economic situation of Australia has been further witnessed with a substantial growth in the mining industry in the last five years. The main impact of this in the society has been seen in terms better job opportunities related to these sectors and the country as a whole. The main contributing factor for this has been discerned in form of better job opportunities related to the mining sector and the country as a whole. Market based economy has taken into account the competitive and the flexible labour market products. These considerations have been further seen to be based on the price and the wage signals which are seen to encourage the capital and labour to move into more profitable and unprofitable zones. The growth consumption of the demand has been seen to increase particularly in New South Wales, although the nation’s average has been seen to be below average as a whole. In 2014, the dwelling investment has been witnessed with a strong growth in terms of contribution made to demand in all the states. However, it has been observed that the growth in the consumptions has been further seen to be bit weak in Queensland and Western Australia. GDP growth of Australia has been seen to be low and so was the rising trend in the unemployment rate. While there has been significant growth on national basis, the domestic demand in the Western Australia, has been seen to fall by 2.5%. The economy of Australia was further seen to shrink by 0.5% in September 2016. The annual rate of growth was anaemic with only 1.8 % in the same year.
Reference List
Adams, S. and Atsu, F. (2014) ‘Aid dependence and economic growth in Ghana’, Economic Analysis and Policy, 44(2), pp. 233–242. doi: 10.1016/j.eap.2014.05.001.
Baker, D., Merkert, R. and Kamruzzaman, M. (2015) ‘Regional aviation and economic growth: Cointegration and causality analysis in Australia’, Journal of Transport Geography, 43, pp. 140–150. doi: 10.1016/j.jtrangeo.2015.02.001.
Bejder, M., Johnston, D. W., Smith, J., Friedlaender, A. and Bejder, L. (2016) ‘Embracing conservation success of recovering humpback whale populations: Evaluating the case for downlisting their conservation status in Australia’, Marine Policy, 66, pp. 137–141. doi: 10.1016/j.marpol.2015.05.007.
Bennett, S., Wernberg, T., Connell, S. D., Hobday, A. J., Johnson, C. R. and Poloczanska, E. S. (2015) ‘The “Great Southern Reef”: social, ecological and economic value of Australia’ s neglected kelp forests’, Marine and Freshwater Research, 67, pp. 47–56. doi: https://dx.doi.org/10.1071/MF15232.
George, D. A. R., Chi, B., Lin, -Ang and Chen, Y. (2015) ‘A circular economy model of economic growth’, Environmental Modelling and Software, 73, pp. 60–63. doi: 10.1016/j.envsoft.2015.06.014.
Google.co.in. (2017). World Development Indicators – Google Public Data Explorer . [online] Available at: https://www.google.co.in/publicdata/explore?ds=d5bncppjof8f9_&met_y=ny_gdp_pcap_cd&idim=country:AUS:USA:CAN&hl=en&dl=en#!ctype=l&strail=false&bcs=d&nselm=h&met_y=ny_gdp_pcap_cd&scale_y=lin&ind_y=false&rdim=region&idim=country:AUS&ifdim=region&tstart=612124200000&tend=1432578600000&hl=en_US&dl=en&ind=false [Accessed 26 May 2017].
Hatfield-Dodds, S., Schandl, H., Adams, P. D., Baynes, T. M., Brinsmead, T. S., Bryan, B. A., Chiew, F. H. S., Graham, P. W., Grundy, M., Harwood, T., McCallum, R., McCrea, R., McKellar, L. E., Newth, D., Nolan, M., Prosser, I. and Wonhas, A. (2015) ‘Australia is “free to choose” economic growth and falling environmental pressures’, Nature, 527(7576), pp. 49–53. doi: 10.1038/nature16065.
Horne, J. (2013) ‘Economic approaches to water management in Australia’, International Journal of Water Resources Development, 29(4), pp. 526–543. doi: 10.1080/07900627.2012.712336.
Iamsiraroj, S. (2016) ‘The foreign direct investment-economic growth nexus’, International Review of Economics and Finance, 42, pp. 116–133. doi: 10.1016/j.iref.2015.10.044.
Law, S. H. and Singh, N. (2014) ‘Does too much finance harm economic growth?’, Journal of Banking and Finance, 41(1), pp. 36–44. doi: 10.1016/j.jbankfin.2013.12.020.
Leigh, A. (2013) ‘Review of: Why Australia Prospered: The Shifting Sources of Economic Growth’, Journal of Economic Literature, 51(3), pp. 908–911. doi: 10.2307/j.cttq9rwb.
McDonald, M. (2015) ‘Climate Security and Economic Security: The Limits to Climate Change Action in Australia?’, International Politics, 52(4), pp. 484–501. doi: 10.1057/ip.2015.5.
Putterman, L. (2013) ‘Institutions, social capability, and economic growth’, Economic Systems, 37(3), pp. 345–353. doi: 10.1016/j.ecosys.2012.12.002.
Salahuddin, M. and Alam, K. (2015a) ‘Internet usage, electricity consumption and economic growth in Australia: A time series evidence’, Telematics and Informatics, 32(4), pp. 862–878. doi: 10.1016/j.tele.2015.04.011.
Salahuddin, M. and Alam, K. (2015b) ‘Telematics and Informatics Internet usage , electricity consumption and economic growth in Australia?: A time series evidence’, TELEMATICS AND INFORMATICS, 32(4), pp. 862–878. doi: 10.1016/j.tele.2015.04.011.
Shahiduzzaman, M. and Alam, K. (2014) ‘The long-run impact of Information and Communication Technology on economic output: The case of Australia’, Telecommunications Policy, 38(7), pp. 623–633. doi: 10.1016/j.telpol.2014.02.003.
Tang, C. F. and Tan, E. C. (2015) ‘Does tourism effectively stimulate Malaysia’s economic growth?’, Tourism Management, 46, pp. 158–163. doi: 10.1016/j.tourman.2014.06.020.
Taylor, B., Wallington, T., Heyenga, S. and Harman, B. (2014) ‘Urban Growth and Climate Adaptation in Australia: Divergent Discourses and Implications for Policy-making’, Urban Studies, 51(1), pp. 3–21. doi: 10.1177/0042098013484529.
Thorpe, M. and Leitão, N. C. (2014) ‘Economic growth in australia: Globalisation, trade and foreign direct investment’, Global Business and Economics Review, 16(1), pp. 75–86. doi: 10.1504/GBER.2014.058079.
Order an Essay Now & Get These Features For Free:
Turnitin Report
Formatting
Title Page
Citation
Outline
